Broker Agent vs. Independent Truck Dispatcher
What is the difference between a freight Broker Agent and an Independent Dispatcher? The following gives a brief description of the two and highlights the advantages of choosing our independent dispatcher.
FREIGHT BROKER AGENTS work for established brokerages. They will contact direct manufacturers to get set up with them and begin receiving a list of their available freight. Once they begin obtaining freight, they will look for trucks to move the freight.
The idea is to find a qualified compliant carrier who will move the load for the least amount of money so that you can earn a commission. For example, Direct Manufacturer is paying $1000, and the freight broker agent wants a 15% commission. The broker agent will need to find a truck driver to move the load for $850 or less.
The commission is then split with the brokerage–50/50, 60/40, 70/30, with the freight broker agent getting an equal or higher percentage of the split. If the commission is $150 and the split is 50/50, then the broker agent would receive $75 for that particular load. The broker agent is working through the brokerage, but in essence, they are working for the shipper.